A Study of Tax Implications in Pension Funds Management

Pension funds are an important part of private savings flows, the main supplier of capital to industry and play a large and growing role in the providing retirement incomes in countries with mature funded pension systems. Reforms which increase the emphasis on privately managed, funded pensions must get the tax treatment right. Pension do not exit to increase the national savings or to provide jobs for actuaries, tax payers, accountants, fund managers and regulators. Their purpose is to allow the elderly and disabled to retire from work with dignity. This paper sets out the options for taxing pensions, and the arguments between them.